Glossary · IT Procurement
Capital Expenditure
Capital spending to acquire long-lived assets — buying laptops, machines, buildings. In financial accounting, CapEx hits the balance sheet as an asset and is depreciated over time (typically 4 years for laptops per Indonesian PPh Pasal 11). It is not immediately tax-deductible in the year of purchase. For growth-stage companies sensitive to cash flow, large upfront CapEx can limit other operational funding options.
CapEx (Capital Expenditure) frequently appears in B2B IT procurement contexts: Capital spending to acquire long-lived assets — buying laptops, machines, buildings. For enterprise organisations evaluating device rental options, a solid grasp of CapEx directly affects vendor selection criteria, contract negotiation outcomes, and long-term total cost of ownership. Arental works with procurement teams, IT managers, and finance directors across Indonesia to ensure that every contract reflects industry-standard expectations around terms like CapEx.
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